2004/5 Annual Recruitment Industry Survey

The REC (Recruitment & Employment Confederation) is the largest body representing the recruitment industry and recruitment professionals.

Raising standards and driving quality has remained at the heart of the REC’s strategy for the past 12 months and during this period we have delivered some remarkable achievements. The REC Audited programme now provides clear recognition for firms seeking the highest levels of professionalism whilst the launch of the Degree in Recruitment Practice with Middlesex University has taken individual professional development to a new level of opportunity.

The REC conduct a survey of the recruitment industry each year to assess current trends and the financial health of the industry.

For the full REC report CLICK HERE

What did 2004/5 reveal?
There are signs that we are moving through the economic cycle faster these days and there is every possibility that we will progress through the There remains significant opportunity for recruitment firms that can demonstrate first class service credentials and, as ever, the REC will remain at the vanguard of this movement, providing Members with the support and tools they need to help them achieve excellence.

The results of the 2004/05 REC Annual Industry Survey show a decline in the demand for temporary/contract labour and a marked switch to permanent business. Overall, there has been a 4.2% decline in total industry turnover, which now stands at just under £23.5 billion.

Temporary Recruitment
Overall turnover for temporary/contract recruitment fell 11% to £20.3 billion for the period ending 31st March 2005. This is likely to be a reflection of conditions in the wider UK economy together with continued high levels of competition and demand-side pressure on margins.

Permanent Recruitment
In contrast, permanent recruitment has grown significantly since 2003/04 with total turnover increasing to just over £3.2 billion.With permanent recruitment now accounting for nearly 14% of total industry turnover, it is clear that many recruitment firms have made a strategic switch to permanent business over the past twelve months (although some of this increase is probably accounted for by historical under penetration in some ‘permanent rich’ sectors).

For the full REC report CLICK HERE

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